The White House: 100% drug tariffs do not apply to the European Union and Japan

The White House clarified on Friday (September 26) that the latest tariff measures on drugs by the Trump administration do not apply to countries that have already reached trade agreements with the United States.

Bloomberg reported that White House officials said that for trading partners such as the European Union and Japan, the United States will continue to abide by the 15% tariff cap stipulated in the agreement. However, the situation in the UK is different. As the US and the UK have not yet reached an agreement on the specific tariff rate for drugs, drugs exported from the UK to the US will face a 100% tariff.

Trump suddenly announced on the Social media platform Truth Social on the 25th that starting from October 1st, a 100% import tariff would be imposed on all original or patented drugs, a 25% import tariff on heavy trucks, and a 30% to 50% tariff on furniture such as kitchen cabinets and bathroom washbasins.

However, Trump's social media posts lacked details and did not explain how they would affect the signed trade agreements. Trading partners such as Japan, Switzerland and Australia have all said that they are learning about new measures and assessing the impact. The European Union has indicated that the trade agreement with the United States clearly stipulates that the drug tariff will not exceed 15%.

In May this year, the UK reached its first trade agreement with the Trump administration, with a base tariff rate of 10%. However, the US-UK trade agreement did not specifically stipulate tariffs on drugs. According to sources familiar with Trump's tariff plan, brand-name medicines from the UK will be subject to a 100% full tariff.

The Financial Times reported on the 26th that the British government will raise the prices of some medicines to placate Trump. The report also said that Chandra, the chief business advisor to British Prime Minister Stammer, will travel to Washington next week. A spokesperson for the British government did not directly respond to the Financial Times' report, but said that the UK is engaged in constructive dialogue with the US and the industry.